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The Allowance method of recording Bad Debt Expense is required because of the: A. B. D. C. Matching Principle Matching and Co

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Answer #1

1. The Allowance Method of recording bad debt expense is required because of the matching principle. Matching principle requires you to record both revenue and expenses for the same period. Hence, Option A is the correct answer.

2. The direct method of recording bad debts can be used in case of all three options. Hence, Option D is the correct answer.

3. Option B is the correct answer.

4. Option C is the correct answer because in times of rising prices and wanting to issue a new stock, FIFO method would result in high inventory valuation

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